Yes, the septic tank is an asset since it is for your rental. However, since you replaced the septic in preparation for selling the rental, you may add the $20,000+ cost of the improvement to the adjusted basis of the rental house when you sell it.
To report the sale of this property:
- Type 'sale of business property' into the search box
- Select 'Jump to sale of business property'
You will have to enter the amount of prior year depreciation by hand. You can get that figure from your prior-year return.
Additional information: I sold my rental property. How do I report that?
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